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StealthGas(GASS) - 2025 Q1 - Earnings Call Transcript
StealthGasStealthGas(US:GASS)2025-05-28 15:02

Financial Data and Key Metrics Changes - The company generated $42 million in revenues during Q1 2025, compared to $41.6 million in Q1 2024 and $43.5 million in Q4 2024, indicating resilience in commercial operations [4] - Adjusted net income for Q1 2025 was $16.1 million, similar to Q4 2024 but lower than Q1 2024, primarily due to increased expenses [4][20] - Earnings per share on an adjusted basis were 44¢ for the quarter [4] - The company reduced debt by $54 million in 2025, bringing current debt levels close to $30 million, while maintaining a free cash balance of more than double that figure [5][24] Business Line Data and Key Metrics Changes - The company maintained period coverage for 2025 at 70% of fleet days and secured over $165 million in future revenues [6][10] - Operating expenses increased by 17% to $13.5 million, mainly due to higher crew costs and maintenance fees [18] - The company concluded three period charters during the quarter, with two extensions, leaving five vessels operating in the spot market [9] Market Data and Key Metrics Changes - The U.S. accounted for 63% of imports in Northern Europe in Q1 2025, up from 55% in the previous quarter [11] - The LPG market saw a steady upward path with global exports increasing by 4.4% in 2024, and the U.S. marked an 8% year-on-year growth for Q1 2025 [25][26] - China and India increased their LPG imports by 8% and 10% year-on-year, respectively, despite geopolitical tensions affecting trade [29][30] Company Strategy and Development Direction - The company is focused on deleveraging and has achieved a net debt-free status, with a strategy to accumulate cash faster [5][24] - The company plans to continue diversifying and renewing its fleet, with recent agreements to acquire shares in two vessels [7][16] - The management is looking to extend the duration of charters and maintain a visible revenue stream [6][9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum throughout 2025 despite market uncertainties [40] - The company noted that the market will continue to pay premium rates West of Suez due to a shortage of suitable vessels [12] - The management highlighted the potential for increased LPG volumes due to OPEC's decision to lift oil production cuts [28] Other Important Information - The company has begun a share repurchase program, spending approximately $1.8 million since March 2025 [5][41] - The company expects interest costs to be further reduced in upcoming quarters due to lower debt levels [19] Q&A Session Summary Question: What is the outlook for the LPG market? - The management indicated that global LPG exports are on a steady upward path, with the U.S. being a significant player, and expects continued growth in the market [25][28] Question: How is the company managing its debt? - The company has successfully reduced its debt significantly and is now net debt-free, allowing for faster cash flow accumulation [24][41] Question: What are the implications of geopolitical tensions on trade? - The management noted that geopolitical tensions have led to rerouting of trade flows, particularly with China looking to the Middle East for supplies [30]